MWWPR Group Sued - Lawsuit Against MWW PR Vs. Byte Dept. Inc.

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SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: PART __ -------------------------------------------------------------------------x BYTE DEPT. INC., Plaintiff, – against – MWW GROUP LLC d/b/a MWW PR, Defendant. : : : : : : : : : : Index No. /2016 VERIFIED COMPLAINT ------------------------------------------------------------------------- x Plaintiff Byte Dept. Inc. (“BDI”), by its attorney The Law Office of Robert S. Landy PLLC, asserts the following for its Verified Complaint, upon knowledge as to its own actions, and otherwise on information and belief: Parties 1. Plaintiff BDI is a New York-based software development consultancy firm that partners with brands to deliver effective software for mobile and web in a variety of industries including entertainment, education, digital publishing and market research. Among other things, BDI provides training services and curriculum development relating to programming and application design. 2. BDI’s principal place of business is located in New York County. 3. According to its website, defendant MWW Group LLC (d/b/a MWW PR) (“MWW”) is a public relations company headquartered in East Rutherford, NJ with seven additional locations, including an office on Park Avenue South in Manhattan (New York County). FILED: NEW YORK COUNTY CLERK 03/22/2016 05:56 PM INDEX NO. 651550/2016 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/22/2016 1 of 30

Transcript of MWWPR Group Sued - Lawsuit Against MWW PR Vs. Byte Dept. Inc.

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: PART __ -------------------------------------------------------------------------x BYTE DEPT. INC., Plaintiff, – against – MWW GROUP LLC d/b/a MWW PR, Defendant.

: : : : : : : : : :

Index No. /2016 VERIFIED COMPLAINT

------------------------------------------------------------------------- x

Plaintiff Byte Dept. Inc. (“BDI”), by its attorney The Law Office of Robert S.

Landy PLLC, asserts the following for its Verified Complaint, upon knowledge as to its own

actions, and otherwise on information and belief:

Parties

1. Plaintiff BDI is a New York-based software development consultancy

firm that partners with brands to deliver effective software for mobile and web in a variety of

industries including entertainment, education, digital publishing and market research. Among

other things, BDI provides training services and curriculum development relating to

programming and application design.

2. BDI’s principal place of business is located in New York County.

3. According to its website, defendant MWW Group LLC (d/b/a MWW PR)

(“MWW”) is a public relations company headquartered in East Rutherford, NJ with seven

additional locations, including an office on Park Avenue South in Manhattan (New York

County).

FILED: NEW YORK COUNTY CLERK 03/22/2016 05:56 PM INDEX NO. 651550/2016

NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/22/2016

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Jurisdiction and Venue

4. Venue is proper in this Court because a substantial part of the events or

omissions giving rise to the claims herein occurred in New York County, the defendant is subject

to personal jurisdiction in New York County and plaintiff BDI’s principal place of business is

located in New York County.

5. This Court has jurisdiction over the defendant subject to CPLR §§ 301 and

302(a). Defendant transacts business within and maintains an office in the State, has committed

tortious acts within the State and/or has committed tortious acts outside the State that have

caused injuries to persons and property within the State.

6. In addition, in connection with the written agreement at issue in this

action, both parties consented to the exclusive jurisdiction of the state and federal courts located

in New York County.

Allegations Common to All Claims

Background

7. In 2015, one of MWW’s clients was the mobile phone maker, Samsung

Communications America (“Samsung”).

8. In 2015, Samsung sponsored a services of events known as the Samsung

Mobile App Academy (the “2015 App Academy”).

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9. According to a website hosted by Scholastic, Inc., one of Samsung’s

partners in the program, “[d]uring the summer of 2015, the Samsung Mobile App Academies

continued to transform hundreds of top-performing high school students into mobile app experts.

The App Academies provided attendees with an opportunity to work with industry leaders, learn

the many facets of mobile app development, and find out about the growing world of mobile

technology careers.” (Available at http://www.scholastic.com/samsungacademy/students.aspx

(last visited March 22, 2016).)

10. At some point prior to April 2015, Samsung retained MWW to organize,

execute and manage several aspects of 2015 App Academy.

MWW Engages BDI

11. By agreement dated April 2, 2015, MWW retained BDI to provide

instructor, staffing and support services in connection with the 2015 App Academy (the

“Services Agreement” or the “Agreement”).

12. The Services Agreement was executed on behalf of MWW by Jennifer

Little, who was then a Senior Vice President of the company.

13. Under the terms of the Agreement, MWW promised to pay BDI

$300,000.00 for successful completion of a defined Statement of Work. The Statement of Work

was referenced by the Agreement and annexed thereto as Exhibit A. The Statement of Work was

also executed by Jennifer Little.

14. A true and correct copy of the Agreement with the annexed Statement of

Work is attached to this Verified Complaint as Exhibit 1

15. The Services Agreement and Statement of Work provided that MWW

would pay 30% of $300,000.00 the fee upon signing, 35% upon the commencement of the first

“academy,” and 35% upon completion of the sixth and final “academy.”

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16. Under Section 2 of the Services Agreement, BDI was entitled to charge a

late fee of 1.5% per month on all sums past due.

17. Section 20 of the Agreement provides that in the event of any dispute, BDI

would be entitled to recover its reasonable legal fees and expenses incurred in connection with

enforcing the Agreement in court.

BDI Completes all Required Work and Receives Partial Payment

18. As of August 2015, BDI had successfully completed the entire Statement

of Work under the Agreement. MWW has never contended otherwise.

19. Moreover, if MWW had any objection to BDI’s performance, the Services

Agreement provided MWW with five days to provide BDI with a “Client Rejection Notice”

under Section 3. This procedure was never invoked by MWW.

20. To date, MWW has paid $180,000 (or 60%) of the fee due under the

Services Agreement.

MWW Repeatedly Agrees but Fails to Pay the Final BDI Invoice

21. The final $120,000.00 was invoiced on August 18, 2015 and was due in

September 2015.

22. The August 18, 2015 invoice has since been updated to reflect the 1.5%

late fee incurred in each of October 2015, November 2015, December 2015, January 2016,

February 2016 and March 2016 to a total current amount due of $130,800.00. A true and copy

of the invoice as updated is attached to this Verified Complaint as Exhibit 2.

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23. After receiving the August 18, 2015 invoice, on September 10, 2015,

Jessica Voss, MWW’s Account Coordinator sent an email to BDI principal Phillip Reyland

inquiring “I wanted to check in and make sure all of MWW’s payments to Byte have been

fulfilled. Please let me know!” Later that day, BDI answered in the negative and resent a copy of

the invoice.

24. On September 22, MWW’s Voss again inquired of BDI’s Reyland “Have

you received your $$?” Again Reyland responded in the negative.

25. On October 1, 2015, Reyland inquired “Any update on the final

payment?” Voss responded the following day stating “It was on the grid to be paid this week.

Let me follow up!”

26. On October 19, 2015 Reyland sent Voss an email stating “Still no

payment. Should i be worried?” However, on October 20, 2015, Voss responded again

confirming MWW’s intent to pay the invoice imminently, stating “Confirmed that you will be

paid this week.”

27. A true and correct copy of above-referenced the emails between Voss and

Reyland are attached to this Verified Complaint as Exhibit 3.

28. MWW never paid the August 18, 2015 invoice.

FIRST CAUSE OF ACTION

(Breach of Contract)

29. Plaintiff repeats and realleges the allegations of paragraphs 1-28.

30. On April 2, 2015, MWW entered into a binding agreement with BDI

under which BDI would perform certain defined services in exchange for a fee of $300,000.00.

31. Under the Agreement, BDI is entitled to recover interest on unpaid sums a

rate of one and one half percent (1.5%) per month.

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32. Under the Agreement, BDI is entitled to recover reasonable fees and

expenses associated with any action to enforce the Agreement in court.

33. MWW failed to pay the final $120,000.00 of the $300,000.00 fee under

the Agreement that was made due under an invoice issued on August 18, 2015.

34. As a result of MWW’s breach of the Agreement, BDI has suffered

damages as of the date of this Verified Complaint amounting to $130,800.00 plus the reasonable

fees and expenses associated with the commencement and prosecution of this action.

SECOND CAUSE OF ACTION

(Account Stated)

35. Plaintiff repeats and realleges the allegations of paragraphs 1-34.

36. Beginning on or about August 18, 2015 BDI presented MWW statements

of account reflecting an unpaid balance of $120,000.00 owed under the Agreement.

37. The indebtedness at issue arose from the Agreement.

38. BDI presented the account to MWW in the form of an invoice.

39. MWW accepted the account stated in the invoice and promised to pay the

same.

40. MWW has failed to pay the account stated.

41. As such, BDI has been damaged in the amount of $120,000.00 by virtue of

MWW’s failure to pay the account stated.

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PRAYER FOR RELIEF

WHEREFORE, plaintiffs demand judgment against defendant MWW Group LLC

and an award of such actual damages as they shall prove at trial, but in an amount not less than

$130,800.00, plus interest under the Agreement accruing at a contractual rate of 1.5% per month

and for the reasonable fees, costs and disbursements of this action as provided for under the

Agreement.

Dated: New York, New York March 22, 2016

THE LAW OFFICE OF ROBERT S. LANDY PLLC

_____________________________ Robert S. Landy 1500 Broadway 17th Floor New York, NY 10036 [email protected] (212) 256-1047

Attorney for plaintiff Byte Dept. Inc.

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EXHIBIT 1

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Phillip Reyland
Managing Director

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Phillip Reyland
Managing Director

EXHIBIT 2

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Description Quantity Unit Price Amount

SAA: 2015 Staffing: Final 40% 1.00 $120,000.00 $120,000.00

Late Fee: September 17, 2015 (1.5%) 1.00 $1,800.00 $1,800.00

Late Fee: October 17, 2015 (1.5%) 1.00 $1,800.00 $1,800.00

Late Fee: December 17, 2015 (1.5%) 1.00 $1,800.00 $1,800.00

Late Fee: January 17, 2016 (1.5%) 1.00 $1,800.00 $1,800.00

Late Fee: February 17, 2016 (1.5%) 1.00 $1,800.00 $1,800.00

Late Fee: March 17, 2016 (1.5%) 1.00 $1,800.00 $1,800.00

Amount Due $130,800.00

Notes

Please send all payments to the address above. To make an ACH payment, please use the information below.

Bank: Bank of America Account Number: Routing Number: 021000322 Swift Code: BOFAUS3N

From Byte Dept.109 West 27th Suite 9E New York NY 10001

Invoice For MWWONE MEADOWLANDS PLAZA EAST RUTHERFORD, NJ 07073 PHONE: 201-507-9500

Invoice ID 363

Issue Date 08/18/2015

Due Date 09/17/2015 (Net 30)

Subject SAA: 2015 Staffing: Final 40%

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EXHIBIT 3

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Phillip Reyland <[email protected]>

Payments 

32 messages

Jessica Voss (DAL­MWW) <[email protected]> Thu, Sep 10, 2015 at 10:37 AM

To: Phillip Reyland <[email protected]>

Good morning Phillip,

 

I wanted to check in and make sure all of MWW’s payments to Byte have been fulfilled. Please let me know!

 

Thanks,

Jess

 

 

 

JESSICA VOSS

ACCOUNT COORDINATOR  

[email protected]   l   mww.com 

T. 214.414.3333   M. 972.689.3677 

3030 Olive St. STE 250, Dallas, TX 75219

 

MWWPR

MATTER MORE + 

 

2014 Global SABRE Award Winner

Think of the environment before printing this email.

 

 

Phillip Reyland <[email protected]> Thu, Sep 10, 2015 at 10:39 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Morning! Still waiting for the final invoice to be paid. Here it is: https://bytedept.harvestapp.com/client/invoices/

feda79f8f647f3528e3bc2f9c8229a612a1a0ff2 

Thanks!  

[Quoted text hidden]

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Jessica Voss (DAL­MWW) <[email protected]> Thu, Sep 10, 2015 at 10:40 AM

To: Phillip Reyland <[email protected]>

Thank you!

 

From: Phillip Reyland [mailto:[email protected]]  Sent: Thursday, September 10, 2015 9:39 AM To: Jessica Voss (DAL­MWW) Subject: Re: Payments

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Jessica Voss (DAL­MWW) <[email protected]> Tue, Sep 22, 2015 at 5:03 PM

To: Phillip Reyland <[email protected]>

Have you received your $$?

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Thursday, September 10, 2015 9:39 AM 

To: Jessica Voss (DAL‐MWW) <[email protected]

Subject: Re: Payments

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Phillip Reyland <[email protected]> Wed, Sep 23, 2015 at 11:24 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Not yet. How's you? 

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Jessica Voss (DAL­MWW) <[email protected]> Wed, Sep 23, 2015 at 11:25 AM

To: Phillip Reyland <[email protected]>

That’s what I thought … I’m busy, busy, busy. How are you doing?

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, September 23, 2015 10:25 AM

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Phillip Reyland <[email protected]> Wed, Sep 23, 2015 at 11:29 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Things are perfectly slow and productive at the moment. We're busy but not too busy, exactly how i like it.  

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Jessica Voss (DAL­MWW) <[email protected]> Wed, Sep 23, 2015 at 11:43 AM

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To: Phillip Reyland <[email protected]>

Must be nice haha! Are you free sometime next week? I wanted to pick your brain about a few things for the

announcement.

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, September 23, 2015 10:29 AM

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Phillip Reyland <[email protected]> Wed, Sep 23, 2015 at 11:45 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Absolutely, what time works for you? Just watching the sizzle reel for the first time. They did an amazing job.  

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Jessica Voss (DAL­MWW) <[email protected]> Wed, Sep 23, 2015 at 11:47 AM

To: Phillip Reyland <[email protected]>

Isn’t it awesome? I’m free any time on Tuesday.

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, September 23, 2015 10:45 AM

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Phillip Reyland <[email protected]> Wed, Sep 23, 2015 at 11:47 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

how about noon EST? 

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Jessica Voss (DAL­MWW) <[email protected]> Wed, Sep 23, 2015 at 11:53 AM

To: Phillip Reyland <[email protected]>

Perfect! I’ll send out a calendar invite shortly

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, September 23, 2015 10:48 AM

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Phillip Reyland <[email protected]> Thu, Oct 1, 2015 at 1:43 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

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Any update on the final payment?  

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Jessica Voss (DAL­MWW) <[email protected]> Fri, Oct 2, 2015 at 11:12 AM

To: Phillip Reyland <[email protected]>

It was on the grid to be paid this week. Let me follow up!

 

‐Jess

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Thursday, October 01, 2015 12:43 PM

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Phillip Reyland <[email protected]> Thu, Oct 8, 2015 at 5:01 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Any update? Happy Thursday! 

[Quoted text hidden]

Jessica Voss (DAL­MWW) <[email protected]> Mon, Oct 12, 2015 at 3:39 PM

To: Phillip Reyland <[email protected]>

Still haven’t been paid?

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Thursday, October 08, 2015 4:01 PM

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Phillip Reyland <[email protected]> Tue, Oct 13, 2015 at 9:57 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Nope :( 

[Quoted text hidden]

Phillip Reyland <[email protected]> Mon, Oct 19, 2015 at 7:22 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Still no payment. Should i be worried?  

[Quoted text hidden]

Jessica Voss (DAL­MWW) <[email protected]> Tue, Oct 20, 2015 at 9:45 AM

To: Phillip Reyland <[email protected]>

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Confirmed that you will be paid this week

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Monday, October 19, 2015 6:23 PM

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Phillip Reyland <[email protected]> Tue, Oct 20, 2015 at 9:46 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Thank you! 

[Quoted text hidden]

Phillip Reyland <[email protected]> Wed, Oct 28, 2015 at 2:27 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Still nothing. 

how are you? 

[Quoted text hidden]

Jessica Voss (DAL­MWW) <[email protected]> Mon, Nov 2, 2015 at 11:41 AM

To: Phillip Reyland <[email protected]>

I hope you had a great weekend! Anything yet?

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, October 28, 2015 1:28 PM

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Phillip Reyland <[email protected]> Wed, Nov 4, 2015 at 2:03 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Nothing :) 

Weekend was great, how about you? 

[Quoted text hidden]

Jessica Voss (DAL­MWW) <[email protected]> Wed, Nov 4, 2015 at 3:46 PM

To: Phillip Reyland <[email protected]>

Well, I’m glad you had a good weekend! Below is the information to Will Starace, MWWPR’s CFO. Please feel free to

email him directly in regards to the payment.

 

William Starace

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Executive Vice President and Chief Financial Officer

MWW Group

One Meadowlands Plaza

East Rutherford, New Jersey 07073

Office: 201­507­9500

Mobile: 646­761­8278

Thanks,

 

Jess

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, November 04, 2015 1:03 PM 

To: Jessica Voss (DAL‐MWW) <[email protected]

Subject: Re: Payments

 

Nothing :) 

 

Weekend was great, how about you? 

 

­ 

Phillip Reyland, Managing Director 

P (212) 645­1460 | C (917) 657­4994 

Byte Dept.  

109 W.27th, Suite 9E, New York, 10001 

ByteDept.com 

 

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Phillip Reyland <[email protected]> Fri, Dec 18, 2015 at 9:57 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Still no check. Can you send me Williams's email?  

[Quoted text hidden]

Jessica Voss (DAL­MWW) <[email protected]> Fri, Dec 18, 2015 at 9:59 AM

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To: Phillip Reyland <[email protected]>

Yeah, it’s [email protected]. I’m so sorry!

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Friday, December 18, 2015 8:58 AM

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Phillip Reyland <[email protected]> Mon, Jan 11, 2016 at 4:16 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

He's not answering emails. I'm guessing things are a little messy at the NYC office. How's you? 

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Jessica Voss (DAL­MWW) <[email protected]> Tue, Jan 12, 2016 at 11:26 AM

To: Phillip Reyland <[email protected]>

I’ll make some calls and see what is going on. In the meantime, can we cancel the Wistia video site? It’s being billed

to my personal cc every month.

 

Thanks ahead,

Jess

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Monday, January 11, 2016 3:16 PM

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Phillip Reyland <[email protected]> Tue, Jan 12, 2016 at 11:27 AM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

Do you have all the analytics you need from it? (I never got a confirmation when i emailed it over) if you feel good about

it i can log in now and cancel. 

Thanks! 

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Phillip Reyland <[email protected]> Wed, Jan 20, 2016 at 3:06 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

following up on my previous email....

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Jessica Voss (DAL­MWW) <[email protected]> Wed, Jan 20, 2016 at 3:21 PM

To: Phillip Reyland <[email protected]>

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Hi Phillip,

 

Apologies for the delay, yes, we received it, and everything looks good!

 

Thanks again,

Jess

 

From: Phillip Reyland [mailto:[email protected]]  

Sent: Wednesday, January 20, 2016 2:06 PM

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Phillip Reyland <[email protected]> Thu, Jan 21, 2016 at 4:56 PM

To: "Jessica Voss (DAL­MWW)" <[email protected]>

great, cancelled the account so you shouldn't be billed any longer. 

[Quoted text hidden]

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